STANDARD AGREEMENT FOR REAL ESTATE DEED



STANDARD AGREEMENT FOR REAL ESTATE DEED

THIS AGREEMENT FOR REAL ESTATE DEED (this Agreement) is made and entered into this ______ day of ___________________________, 20_____, by and between ______________________________________________________________________, (the First Party), and ______________________________________________________________________ (the Second Party).

WITNESSETH, that if the Second Party first makes the payments and performs the covenants contained in this Agreement on his part to be made and performed, the Second Party shall purchase and the First Party, his heirs, executors, administrators, personal representatives, or assigns, hereby covenants and agrees to convey to the Second Party, his heirs, executors, administrators, personal representatives, or assigns, in fee simple absolute, clear of all encumbrances, except easements and covenants of record, if any, by Limited Warranty Deed, the property more fully described as follows:

Address________________________________________________________

________________________________________________________ (the Property)

In consideration of the mutual promises and covenants contained herein, the undersigned parties agree as follows:

1. Conveyance

1.1 The First Party shall execute and deliver to the Second Party a Limited Warranty Deed upon full payment of the Purchase Price by Second Party as set out in this Agreement.

1.2 The Limited Warranty Deed shall be recorded at the expense of the Second Party.

1.3 Title shall be conveyed free and clear of all encumbrances except those mortgages or liens, if any, mentioned herein, easements, restrictions, limitations, reservations, covenants and conditions of record not coupled with a possibility of reverter, right of reentry or other reverter right which amounts to a qualification of the fee, and subject also to applicable zoning ordinances and real estate taxes for the year in which the Limited Warranty Deed is delivered, and thereafter.

2. Purchase Price

The Second Party shall pay to the First Party the sum of __________________________________________________________________ Dollars ($__________.___) in the following manner. The down payment of ______________________________________________ Dollars ($_________________) paid to the First Party upon execution of this Agreement, the receipt of which is hereby acknowledged.

The principal sum of_________________________________________________ Dollars ($______________) with interest at the rate of ________.____% percent per annum, in monthly installments of $______________________________________________ Dollars ($__________.___), with interest beginning on the __________ day of _______________________, 20______, and payments and interest continuing on the _____________ day of each and every month thereafter, for period of _____________ months, or until termination or fulfillment of this Agreement.

Sellers Initials __________ ________ Buyers Initials __________ __________

3. Insurance and Taxes

3.1 The Second Party shall create and maintain an escrow account that will pay all taxes, assessments, or impositions that may be legally levied or imposed upon the Property during the term of this Agreement.

3.2 The Second Party shall purchase a “Contents Insurance Policy” as of this date and pay yearly, in advance, to maintain said insurance policy in full force and effect during the term of this Agreement.

3.3 The Second Party shall deposit the sum of $_______.___ monthly and this sum shall be held in escrow by the first party until insurance premiums and taxes are due plus 10%. This sum shall be held in escrow by First Party until said property taxes are due. Annually, First Party shall establish a new monthly escrow payment as required to pay said property taxes and hazard insurance. Any changes to this agreed sum of $______.___ shall be notified by the Second Party by the First Party and the Second Party shall make payment accordingly. Failure by the Second Party to make the monthly payments shall be treated as default on the part of the Second Party.

4. Payments

4.1 All payments together with any amounts due shall be made payable to ___________________________ and shall be delivered via first class U. S. Mail or by hand to:

_______________________________________

_______________________________________

_______________________________________, or to such payee and address Second Party has been, from time to time, notified of in writing by First Party, in a timely manner as provided for herein.

5. Damage to Property

5.1 Risk of loss by fire or other casualty is that of the Second Party.

5.2 The Second Party shall keep the building upon the premises insured with an insurance company satisfactory to the First Party for a sum not less than its full insurable value.

5.3 The Second Party shall be shown as the loss payee on the insurance policy and all insurance proceeds shall be payable to the First Party.

5.4 In the event of a loss by fire or other casualty, the rights and obligations of the parties shall be as follows:

a. If the damage to the building is less than fifty (50%) percent of the total value of the improvements, the Second Party shall be obligated to repair or reconstruct, as the case may be, and the Second Party shall apply the insurance proceeds directly to the costs of such repair or reconstruction, with the Second Party being entitled to any surplus insurance funds over and above the costs of repair or reconstruction, and the Second Party being further liable for any deficiency after application of the insurance proceeds to such costs.

b. If the damage to the building is in excess of fifty (50%) percent of the total value of the improvements, the Second Party shall have the option as to whether to repair or reconstruct following such casualty loss:

(i) If the Second Party elects not to repair or reconstruct, then the unpaid balance of the purchase price, together with accrued interest to date, but excluding unearned interest, shall at the option of the First Party become due and payable forthwith, and the insurance proceeds shall be applied towards the application of such sum, any surplus of the insurance proceeds over and above the Second Party's obligations shall be retained by the Second Party. In the event that the contract is paid out as a result of the application of the insurance proceeds, the First Party shall deliver a deed to the Second Party and consummate the transaction. In the event the contract is not paid out as a result of the application of the insurance process pursuant to an election not to repair or reconstruct after casualty, the proceeds shall be credited to the account of the Second Party and the Second Party will continue to make regular payments pursuant to the terms of the contract until the Second Party's obligations are satisfied and the contract consummated.

Sellers Initials __________ ________ Buyers Initials __________ __________

(ii) If the Second Party elects to repair or reconstruct, the insurance proceeds shall be applied by the Second Party to the costs of such repair or reconstruction, the Second Party shall submit the building plans to the First Party for approval, which approval shall be granted if the value of the land after the repair or reconstruction will equal or exceed the value of the land immediately prior to the casualty.

6. Condemnation

6.1 If during the term of this Agreement, if the Property is taken by eminent domain the rights and obligations of the parties shall be as follows:

a. If the amount taken is less than fifty (50%) percent of the total value of the property at the time of the taking, the entire award shall be paid to the Second Party and the contract shall continue unaffected by the taking.

b. If the amount taken is more than fifty (50%) percent of the total value of the property but less than seventy-five (75%) percent of the total value at the time of the taking,

(i) If the value of the property remaining is equal to or greater than the amount of the Second Party's indebtedness under this Agreement, then the entire award shall be paid to the Second Party and this Agreement shall continue unaffected by the taking, but,

(ii) If the value of the property remaining is less than equal to or greater than the amount of the Second Party's indebtedness under this Agreement, then so much of the award shall be paid to the First Party as to reduce the outstanding indebtedness of the Second Party under this Agreement to a point where the value of the property not taken is equal to the remaining outstanding indebtedness under this Agreement, the balance of the award shall be paid to the Second Party, and this Agreement is thus accelerated as to the final payment but shall otherwise continue unaffected by the taking. However, such sums as are necessary for the useful alteration or restoration of the un-condemned portion of the property shall be applied for such purpose before the remaining portion of the award is turned over to the First Party for reduction of the debt. In determining the value of the un-condemned portion of the property, the value shall be the fair market value after the completion of such repairs or alterations as may have been necessitated by the condemnation.

c. If the amount taken is more than seventy-five (75%) percent of the total value of the property at the time of the taking, then the award shall be paid to the First Party to the extent that is necessary to pay out this Agreement, such sum including accrued interest to date, but excluding unearned interest, and the balance of the award shall be paid to the Second Party. This Agreement shall thus be consummated and the First Party will convey to the Second Party any of the property herein included which was not taken by eminent domain. In the event the amount of the award is insufficient to satisfy the outstanding obligations of the Second Party to the First Party, excluding unearned interest, this Agreement shall nevertheless be terminated as previously provided in this paragraph.

6.2 The Second Party expressly agree that the provisions of this Paragraph shall apply also to any settlement or agreement reached between the Second Party and any corporation, authority or agency having the power of eminent domain whereby the Second Party voluntarily conveys to such agency, authority, or corporation in order to avoid condemnation proceedings.

Sellers Initials __________ ________ Buyers Initials __________ __________

7. Prepayment

7.1 The Second Party may prepay the entire balance outstanding at any time, WITH thirty (30) DAYS WRITTEN NOTICE and a _______% prepayment penalty, but may make partial prepayments that do not exceed ___________% of the outstanding balance in any given month without notice. Such prepayment shall not include unearned interest. Upon full prepayment, the First Party shall have ninety (90) days in which to deliver the deed.

8. Option to Call

8.1 The First Party shall have the right to call this Agreement fully due and payable after the term of _________ (______) months.

8.2 This right may be exercised upon notice to the Second Party

8.3 Upon the exercise of this option by the First Party, the outstanding principal balance plus accrued interest to the time of payoff shall become due and the Second Party shall have ____________ (____) days to comply.

9. Specific Performance

9.1 If the First Party fails to comply with the terms of this Agreement or to perform any of the covenants hereby made and entered into, the Second Party shall have the option to collect damages at law or to demand specific performance, costs and reasonable attorney's fees from the First Party.

10. Time

10.1 Both parties expressly acknowledge and agree that time is of the essence of this Agreement.

11. Default

11.1 If the Second Party fails to make payments or any part thereof, or to perform any of the covenants hereby made and entered into, this Agreement shall, at the option of the First Party, be declared void and of no effect, forfeited and terminated, and the Second Party shall forfeit all payments made by him to date on this Agreement and said amount shall be retained by the First Party in full satisfaction and liquidation of all damages sustained by the First Party, and the First Party shall have the right to reenter and take possession of the premises aforesaid without being liable in any action in trespass, or otherwise, and to seek such self-help remedies as shall place the First Party in exclusive possession of the premises.

11.2 In the event of default, the Second Party expressly grants to the First Party the irrevocable power-of-attorney to execute a Quitclaim Deed on the Second Party’s behalf to the First Party conveying any equitable interest in the Property held by the Second Party under this Agreement to First Party. The Quitclaim Deed shall recite that it is executed pursuant to an irrevocable power-of-attorney contained in this Agreement and that the purpose of said Quitclaim Deed is to release any and all interest in the Property held by the Second Party to the First Party, the Second Party having defaulted under the terms of the Agreement. Upon execution of the Quitclaim Deed, the Second Party shall surrender to the First Party forthwith peaceable possession of the Property. Any sums paid to the First Party hereunder shall be considered paid to the First Party as rent for the premises. Any and all improvements placed on or in the Property shall belong to the First Party.

Sellers Initials __________ ________ Buyers Initials __________ __________

Thereafter, the Second Party shall be a tenant at sufferance and subject to a dispossessory action by the First Party to obtain possession of the premises. In the event the First Party elects such forfeiture, and executes the Quitclaim Deed, then the Second Party shall not be liable to the First Party for any amount still due under Paragraph 1 of this Agreement. The Second Party agrees to leave peacefully and cooperate fully in the repossession process. The Second Party expressly waives demand, protest, notice of demand, protest and non-payment.

11.3 If the applicable laws do not permit a remedy for possession, and if First Party requires immediate payment as above, the First Party may invoke the power of sale granted by Second Party and any other remedies permitted by applicable law. The Second Party expressly appoints the First Party as its agent and attorney-in-fact to exercise the power of sale. The First Party shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph, including but not limited to, fifteen percent (15%) attorney’s fees and costs of title evidence. The power and agency granted are coupled with an interest, are irrevocable by death or otherwise and are cumulative to the remedies for collection of debt as provided by law.

11.4 The First Party shall give a copy of the notice of sale to the Second Party before invoking the power of sale. The First Party shall also give notice of sale by public advertisement for the time and manner prescribed by applicable law. The Property shall be sold by public auction without further demand on the Second Party to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order the First Party determines. The First Party or any person on behalf of the First Party, or his assigns, may bid and purchase at such sale. The First party shall execute and deliver to the purchaser or purchasers at such sale a sufficient conveyance of the property. The conveyance shall contain recitals as to the happening of the default and the execution of the power of sale by the First Party. The conveyance made by the First Party or assigns, shall be binding and conclusive upon the Second Party, and the heirs, executors, administrators, and assigns of the Second Party, and the conveyance shall bar all equity of redemption of the Second Party or the successors in interest of the Second Party, in and to the Property.

11.5 The Second Party expressly acknowledges and agrees that the First Party shall apply the proceeds of the sale in the following order:

(i) to all expenses of the sale, including, but not limited to, fifteen percent (15%) attorney’s fees;

(ii) to all sums secured by this Agreement; and

(iii) any excess to the person or persons legally entitled to it.

11.6 If the Property is sold pursuant to this paragraph, the Second Party, or any other person holding possession of the Property through Second Party, shall immediately surrender possession of the Property to the purchaser at the sale. If possession is not surrendered, the Second Party or such person shall be a tenant holding over and may be dispossessed in accordance with applicable state law.

12. Alternative Remedy

12.1 If the Second Party defaults, the unpaid balance due under the Agreement shall, at the option of the First Party, become due and payable, and all costs and expenses of collection, including fifteen percent (15%) of the principle and interest attorney's fees, shall be paid by the Second Party, and all such sums are hereby secured by the Agreement. The First Party shall reinstate the Agreement upon receipt of _____________Dollars ( $_____) reinstatement fee, if offered within thirty (30) days of the incidence of default.

Sellers Initials __________ ________ Buyers Initials __________ __________

13. Installments

13.1 The Second Party expressly acknowledges that the timely payment of each installment shall be an essential part of this contract.

13.1 All late payments shall be charged late fees as under:

a) Payments received one to five (1-5) days after the due date shall require a late fee of five percent (5%) of the payment

b) Payments received six to ten (6-10) days after the due date shall require a late fee of ten percent (10%) of the payment due

c) Payments received eleven to fifteen (11-15) days after the due date shall require a late fee of fifteen percent (15%) of the payment due

13.2 The accumulation of any three installment payments not received within ten (10) days of the due date, or any installment payment not received within fifteen (15) days of the due date shall constitute a default under Paragraph 11 of this Agreement.

13.3 If any check given by Second Party under this Agreement is returned by the bank upon which it is drawn unpaid, Second Party shall pay 5% of the check amount or $50.00, whichever is greater, as a handling fee. This charge will be waived if the bank verifies, in writing, the check was returned due to their error. Any returned check must be redeemed by cashier's check, certified check or money order. In the event more than one check is returned, the Second Party shall pay all future payments and charges in the form of cashier's check, certified check or money order.

14. Outstanding Loans

If the property herein described has any existing underlying mortgage(s), First Party agrees to pay when due all payments due to any lender so long as Second Party hereunder pays all sums due as set forth above. Upon payment in full of the purchase price, First Party agrees to immediately pay off any outstanding loan(s) from the proceeds, so as to deliver free and clear title to Second Party.

15. Maintenance

15.1 The Second Party will not permit, commit or suffer waste and will maintain the improvements at all times in a state of good repair and condition, and will not do or permit to be done anything to the premises that will in any way impair or weaken the security of the First Party's title. In case of the refusal, neglect or inability of the Second Party to repair and maintain said property, the First Party may, at the First Party's option, make such repairs or cause the same to be made, and advance money in that behalf, which sums advanced or costs of repairs shall be the obligation of the Second Party and shall accrue interest, until paid, at the highest rate allowable by law and be secured by this Agreement.

16. Notice

16.1 Any notice necessary under this Agreement may be sent by first class mail to the last known address of the party to be notified.

Sellers Initials __________ ________ Buyers Initials __________ __________

17. Service of Process

17.1 Unless specifically disallowed by law, should litigation arise hereunder, service of process therefore may be obtained through certified mail, return receipt requested.

18. : Severability: In the event that any part of this Agreement be construed as unenforceable, the remaining parts of this Agreement shall remain in full force and effect as though the unenforceable part or parts were not written into this Agreement.

19. General

19.1 This Agreement represents the entire agreement and understanding between the undersigned parties with respect to the subject matter of this Agreement, and supersedes any other agreement or understanding, written or oral, that the undersigned parties hereto may have had with respect thereto. No statement or inducement with respect to the subject matter by either party or by any agent or representative of either party which is not contained in this Agreement shall be valid or binding between the undersigned parties.

19.2 No provision of this Agreement may be modified, waived or amended except by a written instrument duly executed by each of the undersigned parties.

19.3 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

19.4 This agreement shall be binding on the undersigned parties, their heirs, personal representatives and/or assigns and shall not be assigned except as herein provided.

19.5 Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement.

19.6 Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.

19.7 In the event that any provision of this Agreement is invalid under any Statute or is held invalid by a court of competent jurisdiction, the remaining provisions shall nonetheless by enforceable according to their terms.

19.8 A Notice of Agreement for Real Estate Deed shall NOT be recorded. If this document is recorded it shall constitute as a default under paragraph 11.

19.9 The Second Party shall not have the right to assign the Second Party’s interest under this Agreement without prior written approval of the First Party to such assignment.

19.10 The substantive laws (as distinguished from the choice of law rules) of the State of _____________applicable to contracts shall govern (i) the validity and interpretation of this Agreement, (ii) the performance by the parties of their respective obligations hereunder, and (iii) all other causes of action (whether sounding in contract or in tort) arising out of or relating to this Agreement or the termination of this Agreement.

Sellers Initials __________ ________ Buyers Initials __________ __________

20. Special Stipulations

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

21. Total Estimated Monthly Payments

Total monthly principal and interest, see paragraph 2. $_________________._____

Total monthly taxes and insurance, see paragraph 3. $_________________._____

Ten percent (10%) escrow fee, see paragraph 3. $_________________._____

Homeowners association fees $_________________._____

Other_________________________________ $_________________._____

Total Estimated Monthly payments shall be $_________________._____

IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year first above written.

__________________________________________ _________________________________(Seal)

Witness First Party:

__________________________________________ _________________________________(Seal)

Witness First Party:

__________________________________________ _________________________________(Seal)

Witness Second Party:

__________________________________________ _________________________________(Seal)

Witness Second Party:

__________________________________________ _________________________________(Seal)

Witness Second Party:

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